This picturesque island, located in the Irish Sea between the UK and Ireland, offers a high standard of living, a vibrant culture, and a welcoming environment for expats.
In this guide, we’ll walk you through everything you need to know about relocating to Isle of man from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Isle of man follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
if you spend more than 182 days in the Isle of man during the tax year.
if you are present in Isle of man on more than 90 days in the current and three preceding tax years.
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New arrivals can make an election to cap their income tax liability at 200,000 during the first five years of residence. Isle of man can be a very tax efficient place to live for expats and nomads and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
Applied for five years.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in Isle of man, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Isle of man has 24 double taxation agreements signed.
